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Jakarta Post

Why pardoning tax evaders is an offense to compliant taxpayers

  • Tassia Sipahutar

    The Jakarta Post

Jakarta   /   Tue, June 28 2016   /  09:25 am

Indonesia is looking this week to pass a controversial tax amnesty bill that will reward tax evaders, but at the expense of those who have met their tax obligations.

Objections and protests have fallen on deaf ears and the government and House of Representatives lawmakers have proceeded with the bill. Now the deliberation is coming to an end, one year after the issue surfaced.

Whether the House will pass the bill that the government is relying on to plug the budget deficit, the draft law is clearly unfair in the first place, and for several reasons.

First, living up to its name, the bill seeks to induce tax evaders to come clean about their assets and to pardon their tax mistakes through various schemes and redemption rates imposed on them.

The latest development of the deliberation has found that the redemption rates will range from 2 percent to 10 percent ...